German companies, less optimistic about Romanian business outlook

Romania is still offering good business opportunities, but to continue the foreign investments and create jobs, the companies need a stable economic environment, legal stability, well-developed infrastructure and a functional education system. Here’s the conclusion of the latest survey conducted by German-Romanian Chamber of Commerce (AHK), along with other 15 CEE countries.

However, companies’ outlook for the Romanian economy and the expectations about the own business, is less optimistic.

In terms of investment, fewer German companies than last year say they will make new investments (2017: 37 percent, 2016: 45 percent), but more than half of those surveyed say they will increase their number of employees (2017: 54 percent, 2016 : 48 percent).

More than half of the 120 companies with German capital surveyed consider the situation in their branch as unchanged compared to last year and 14 percent believe that it has worsened.

Political and economic framework conditions have improved in some respects, but others still require urgent improvements. Especially as regards the fight against corruption, where Romania has made progress in the last two years, there is a significant regression. German companies are also very dissatisfied with the legal stability, being extremely worried about the fiscal measures planned for this year by public administration and especially by infrastructure. As in the other CEE countries, the problem is also the lack of qualified staff.

The infrastructure, which includes transports, communications and energy, is negatively appreciated this year too, Romania ranking the last in the region. 60 percent of those surveyed are dissatisfied or very dissatisfied. Road infrastructure must be expanded and modernized urgently, being a major impediment in taking investment decisions.

AHK survey also shows that the economic policies’ predictability has slightly increased the number of dissatisfied German companies this year compared to last year (2017: 47 percent, 2016: 42 percent), Romania ranking penultimate before Bosnia-Herzegovina.

”It’s therefore absolutely necessary to improve this, and this is also reflected in the companies’ negative assessment of the current Government: 63 percent of the surveyed companies are very dissatisfied with the Tudose Executive,” AHK points out.

AHK surveydissatisfiedforeign investmentsgerman companiesGerman-Romanian Chamber of Commerce (AHK)lack of qualified staffless optimisticPolitical and economic frameworkRomanian business outlookTudose Executive
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